Technological Innovation, Resource Allocation, and Growth
We propose a new measure of the economic importance of each innovation. Our measure uses newly collected data on patents issued to U.S. firms in the 1926 to 2010 period, combined with the stock market response to news about patents. Our patent-level estimates of private economic value are positively...
| Main Authors: | , , , |
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| Format: | Article |
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Oxford University Press (OUP)
2019
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| Online Access: | http://hdl.handle.net/1721.1/120536 https://orcid.org/0000-0001-9387-9728 |
| _version_ | 1811083933473832960 |
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| author | Kogan, Leonid Papanikolaou, Dimitris Seru, Amit Stoffman, Noah |
| author2 | Sloan School of Management |
| author_facet | Sloan School of Management Kogan, Leonid Papanikolaou, Dimitris Seru, Amit Stoffman, Noah |
| author_sort | Kogan, Leonid |
| collection | MIT |
| description | We propose a new measure of the economic importance of each innovation. Our measure uses newly collected data on patents issued to U.S. firms in the 1926 to 2010 period, combined with the stock market response to news about patents. Our patent-level estimates of private economic value are positively related to the scientific value of these patents, as measured by the number of citations the patent receives in the future. Our new measure is associated with substantial growth, reallocation, and creative destruction, consistent with the predictions of Schumpeterian growth models. Aggregating our measure suggests that technological innovation accounts for significant medium-run fluctuations in aggregate economic growth and TFP. Our measure contains additional information relative to citation-weighted patent counts; the relation between our measure and firm growth is considerably stronger. Importantly, the degree of creative destruction that is associated with our measure is higher than previous estimates, confirming that it is a useful proxy for the private valuation of patents. |
| first_indexed | 2024-09-23T12:41:56Z |
| format | Article |
| id | mit-1721.1/120536 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T12:41:56Z |
| publishDate | 2019 |
| publisher | Oxford University Press (OUP) |
| record_format | dspace |
| spelling | mit-1721.1/1205362022-10-01T10:35:27Z Technological Innovation, Resource Allocation, and Growth Kogan, Leonid Papanikolaou, Dimitris Seru, Amit Stoffman, Noah Sloan School of Management Kogan, Leonid We propose a new measure of the economic importance of each innovation. Our measure uses newly collected data on patents issued to U.S. firms in the 1926 to 2010 period, combined with the stock market response to news about patents. Our patent-level estimates of private economic value are positively related to the scientific value of these patents, as measured by the number of citations the patent receives in the future. Our new measure is associated with substantial growth, reallocation, and creative destruction, consistent with the predictions of Schumpeterian growth models. Aggregating our measure suggests that technological innovation accounts for significant medium-run fluctuations in aggregate economic growth and TFP. Our measure contains additional information relative to citation-weighted patent counts; the relation between our measure and firm growth is considerably stronger. Importantly, the degree of creative destruction that is associated with our measure is higher than previous estimates, confirming that it is a useful proxy for the private valuation of patents. 2019-02-22T16:19:54Z 2019-02-22T16:19:54Z 2019-02-22 2019-02-19T18:50:43Z Article http://purl.org/eprint/type/JournalArticle 0033-5533 1531-4650 http://hdl.handle.net/1721.1/120536 Kogan, Leonid, Dimitris Papanikolaou, Amit Seru, and Noah Stoffman. “Technological Innovation, Resource Allocation, and Growth*.” The Quarterly Journal of Economics 132, 2 (March 2017): 665–712 © 2016 The Author(s) https://orcid.org/0000-0001-9387-9728 http://dx.doi.org/10.1093/QJE/QJW040 The Quarterly Journal of Economics Creative Commons Attribution-Noncommercial-Share Alike http://creativecommons.org/licenses/by-nc-sa/4.0/ application/pdf Oxford University Press (OUP) NBER |
| spellingShingle | Kogan, Leonid Papanikolaou, Dimitris Seru, Amit Stoffman, Noah Technological Innovation, Resource Allocation, and Growth |
| title | Technological Innovation, Resource Allocation, and Growth |
| title_full | Technological Innovation, Resource Allocation, and Growth |
| title_fullStr | Technological Innovation, Resource Allocation, and Growth |
| title_full_unstemmed | Technological Innovation, Resource Allocation, and Growth |
| title_short | Technological Innovation, Resource Allocation, and Growth |
| title_sort | technological innovation resource allocation and growth |
| url | http://hdl.handle.net/1721.1/120536 https://orcid.org/0000-0001-9387-9728 |
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